Deutsche Kreditbank (DKB) priced a Eu500m no-grow seven year mortgage Pfandbrief today (Tuesday), with a lead syndicate official noting that the maturity helped the issue stand out from other deals in the market, while Belgium’s KBC stuck to five years for a Eu750m transaction.

DKB leads BayernLB, Commerzbank, HSBC, UniCredit and WGZ built an order book in excess of Eu800m for the deal, with more than 60 accounts involved. They priced the Pfandbrief at 6bp over mid-swaps, following guidance of the 7bp over area and initial price thoughts of the high single-digits.

The lead syndicate official said it was a solid trade.

“It was pretty much German-driven, but there were a few nice international orders in there,” he said. “The final order book was above what I expected given the supply we’ve already had.”

DKB’s deal is only the third euro benchmark covered bond to feature a seven year maturity this year, and the four other deals that have hit the market this week have come with a 2019 maturity.

The lead syndicate official noted the seven year maturity as differentiating DKB’s deal from other recent transactions.

“I think this helped to make it more unique than others,” he said, adding that going out to seven years gives investors welcome additional spread in the context of tight levels close to Euribor, and that some asset managers have been looking into the seven rather than five year maturity.

He said DKB offered a relatively limited new issue premium, putting it at around 3bp.

A DKB January 2018 public sector issue, rated Aa1, was trading at around 4.5bp through, according to the syndicate banker. DKB’s mortgage Pfandbriefe are rated Aa2 by Moody’s.

KBC Bank launched the second Belgian benchmark covered bond of the year today, a Eu750m five year issue for which more than Eu1bn of orders were placed, according to a syndicate banker at one of the leads – Deutsche Bank, DZ Bank, ING, KBC, and UniCredit.

The deal will be priced at 10bp over mid-swaps, in line with guidance of the 10bp over area, which followed IPTs of 10bp-12bp over.

A syndicate banker on the deal said that it achieved the targets in mind, noting the Eu750m deal size as a positive and saying that 10bp over was “where the deal belonged”, with a Belfius 2019 issue, for example, trading at 8bp over. He put the new issue premium at around 2bp, and said that KBC opted to go for size.

Belfius Bank priced a Eu500m five year at 13bp over on 21 January.

A syndicate official away from the leads suggested KBC’s deal was the weakest of today’s supply, but said that overall appetite is strong. He said that it looked relatively cheap to secondaries but expensive compared with some French covered bonds, for example.

He cited KBC December 2017s and May 2020s at around 2bp over and 11bp over, mid, before the Belgian issuer’s latest deal was announced.